{"id":1763389,"date":"2022-12-05T11:45:10","date_gmt":"2022-12-05T16:45:10","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1763389"},"modified":"2022-12-05T11:48:14","modified_gmt":"2022-12-05T16:48:14","slug":"credit-rating-agency-warns-recession-could-trigger-property-tax-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/credit-rating-agency-warns-recession-could-trigger-property-tax-hikes\/","title":{"rendered":"Credit Rating Agency Warns Recession Could Trigger Property Tax Hikes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcredit-rating-agency-warns-recession-could-trigger-property-tax-hikes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1763389&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/2022.12.05-02.33-thepoliticalinsider-638e014c89b88.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p><em>By Brett Rowland (The Center Square)<\/em><\/p>\n<p>Fitch Ratings said Friday that the outlook for state and local governments was \u201cdeteriorating\u201d and an expected recession could put pressure on state and local governments to raise property taxes.<\/p>\n<p>\u201cLocal governments may face slowed growth or possibly contraction in tax revenues associated with real property valuations, which may trigger expenditure controls or revenue-raising measures to preserve budgetary stability,\u201d\u00a0Fitch Ratings\u00a0Senior Director\u00a0Michael Rinaldi said.<\/p>\n<p><strong>RELATED: <a href=\"https:\/\/thepoliticalinsider.com\/report-vast-majority-of-americans-should-wait-until-70-to-collect-social-security\/\" target=\"_blank\" rel=\"noopener\">Report: Vast Majority of Americans Should \u2018Wait Until 70\u2019 to Collect Social Security<\/a><\/strong><\/p>\n<p>Several factors \u201ccould pressure property taxes more quickly than in the past,\u201d according to a U.S. States and Local Governments Outlook 2023\u00a0<strong><a href=\"https:\/\/www.fitchratings.com\/\" target=\"_blank\" rel=\"noopener\">report<\/a><\/strong> from the credit rating agency.<\/p>\n<p>Many U.S. states and local governments have been able to build up a financial cushion that could help them withstand an expected mild recession by the second quarter of 2023, according to the report.<\/p>\n<p>\u201cRobust reserves, in many cases exceeding pre-pandemic levels \u2026 leave states and local governments well-positioned to face this economic weakness,\u201d Fitch Senior Director Eric Kim said in a statement.<\/p>\n<p>But if the recession hits harder than expected, state and local governments could face difficult decisions.<\/p>\n<div id=\"subscribe\" class=\"email-signup inarticle\">\n<h4>Support Conservative Voices!<\/h4>\n<h5><strong>Sign up to receive the latest<\/strong> political news, insight, and commentary delivered directly to your inbox.<\/h5>\n<\/div>\n<p>\u201cA significantly deeper and prolonged recession could lead governments towards credit negative budget choices such as sustained pension funding deferrals or payment delays,\u201d Kim said.<\/p>\n<p>The report noted that \u201cboth state and local governments rely on tax revenues including income and sales taxes, which respond quickly to changes in the economy.\u201d But property taxes also could come into play.<\/p>\n<p><strong>RELATED: <a href=\"https:\/\/thepoliticalinsider.com\/report-41-of-small-businesses-cant-pay-rent-this-month\/\" target=\"_blank\" rel=\"noopener\">Report: 41% of Small Businesses Can\u2019t Pay Rent This Month<\/a><\/strong><\/p>\n<p>\u201cProperty taxes are another key revenue source for local governments and tend to be slower in their economic responsiveness,\u201d according to the report. \u201cBut the twin dynamics of a rapidly cooling housing market and a commercial real estate market adjusting to the pandemic shift away from office-based work could pressure property taxes more quickly than in the past.\u201d<\/p>\n<p>Fitch Ratings is one of three major credit rating agencies that rate a borrower\u2019s ability to pay back debt.<\/p>\n<p><em>Syndicated with permission from The Center Square.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Brett Rowland (The Center Square) Fitch Ratings said Friday that the outlook for state and local governments was \u201cdeteriorating\u201d and an expected recession could put pressure on state and<\/p>\n","protected":false},"author":1,"featured_media":1763392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1763389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1763389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1763389"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1763389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1763392"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1763389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1763389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1763389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}